long term cpaital gain regarding queery

i sold my house on 5.1.2011 and my date of filing return is on 31st july , which i skipped i gained profit of 34 laks and i purchased a new flat and invested in the form of instalments as the falt is under construction and i have not got the possession till date . so how will be capital gain tax will be calculated and how can save it ?

asked Jan 21 '12 at 01:40 by deepak 1111

If possession of new property is not taken before last date of return filing (31st July, 2011), the gains amount had to be deposited into capital gain scheme account and future payments to builder/seller of new property had to be done from this account.

As you did not deposited amount into capital gain account before end date, income tax department now can ask you for income tax payment on long term gains.

Please see below method for computation of long term gains and income tax:
Purchase Year = A, Purchase Cost = P, Cost Inflation Index (CII) for purchase year = X
Sale Year = B, Selling price = Q, CII for sale year = Y
Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q - R = S
Income tax on capital gain = S x 20%

answered Jan 23 '12 at 16:08 by Pankaj Batra 5.2k320


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Asked: Jan 21 '12 at 01:40

Seen: 1,148 times

Last updated: Jan 23 '12 at 16:08